stock price trading

Stock Trading Alert: Short-term uncertainty following recent decline

December 16, 2013, 6:36 AM

The main U.S. stock market indexes were mixed between -0.1% and +0.1% on Friday, as investors hesitated following recent move down. The S&P 500 index remained in a short-term consolidation above the level of support at 1,770-1,775, marked by the October-November consolidation, followed by some local bottoms. For now, it looks like a flat correction of the recent decline. The nearest resistance is at around 1,780-1,785. Will the market bounce off the above-mentioned support level?

Daily S&P 500 index chart - SPX, Large Cap Index

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.3-0.4%. The European stock market indexes have gained 0.4-1.2% so far. Investors will now wait for some economic data announcements: Empire Manufacturing and Productivity at 8:30 a.m., Industrial Production and Capacity utilization at 9:15 a.m. The S&P 500 futures contract (CFD) declined to the level of support at around 1,750-1,755, then bounced off sharply, increasing its recent volatility. The nearest important resistance is at 1,780-1,785, as we can see on the 15-minute chart:

S&P500 futures contract - S&P 500 index chart - SPX

Our intraday outlook remains neutral, and our short-term outlook is neutral:

Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The above analysis is the first of today's 2+ Stock Trading Alerts. Stay as updated as possible on the current events and trends on the
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Thank you,
Paul Rejczak

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